After several roadblocks, Governor Gretchen Whitmer finally signed the sports betting bill and made Michigan the 20th state with a legalized athletic wagering market in the US. The Lawful Sports Betting Act was signed into law this Friday. Michigan is now the 9th state to permit sports betting in 2019.
A modern approach to sports betting
Gov. Whitmer’s signature has helped in modernizing the gambling industry of the state. It would not only permit legal sports gambling but also create a larger, more modern market for online poker, online casino gambling, and even daily fantasy sports.
Whitmer released a statement in which she called the bill a bipartisan effort and thanked Rep. Elizabeth Warren and Sen. Curtis Hertel Jr. for their efforts towards realizing this goal. She added,
“My top priority in signing this legislation was protecting and investing in the School Aid Fund because our students deserve leaders who put their education first.”
Sen. Hertel played a crucial role in helping the bill pass. He set March Madness as the ideal timeline for the launch of the legal sports betting market in Michigan. Recently, he talked to Legal Sports Report and expected that the bills would be signed into law before Christmas.
What to expect from the bill?
The Michigan sports betting bill will bring an estimated $19 million in new revenue for the state. The Michigan Department of the Treasury stated that an estimated $4.8 million could be added to the School Aid Fund because of the gambling expansion plans.
We must note that retail sports betting was legal in the state even before the new bill was signed. The Michigan Gaming Control Board also urged commercial casinos to get permission for Class III games. However, the casinos did not act on the proposal because the games were being taxes at 22%. With the new legislation, they will be able to afford more advantageous taxation rules.
Under the new law, 23 tribal casinos and three commercial casinos in the state will be eligible to apply for a license for land-based and online sports betting. They will pay an 8.4% tax on their adjusted handle. The casinos will be eligible for deducting free-play promotions from their gross receipts. However, casinos in the city of Detroit will be liable to pay another 1.25% in city taxes. The licensing fee is $100,000, while an initial application fee is $50,000. The licensees will also have to pay an annual $50,000 fee.